Understanding Binance Coin
Binance Coin (BNB) is a newcomer to the crypto world, yet it has gone on a bullish run since it was created. The coin was developed by Binance, the largest crypto exchange platform in the world, to serve as a transactional coin across its network.
BNB has done well since its launch, but there are surely lingering questions. This article gives a precise insight into what Binance Coin is and how to trade BNB for BTC.
What to Know about Binance Coin (BNB)
What Is Binance?
Binance is a crypto conversion service that has gone from one of the forerunners to the largest in the industry. To put it in perspective, Binance is supported in over 150 countries, and Binance.US alone records an estimated average of $2 billion daily. Binance supports fiat-to-crypto exchanges.
What Is Binance Coin?
Binance Coin is an ICO-funded crypto founded in 2017 to facilitate payments across the Binance network. BNB serves as a digital fuel for the entire Binance ecosystem, and it allows you to save on the payment of fees, earn money for holding an asset, and participate in investment trends.
Uses of BNB
BNB can be used as a payment method for:
- Trading tokens on the Binance CEX and Binance Smart Chain
- Transactional fees on the Binance DEX and Binance Chain
- Making online and offline transactions using Binance Pay/Card
Mechanisms of Binance Coin (BNB)
Design and Security Model
BNB operates on the Tendermint BFT consensus, a system that works with three node types:
- First: Validator (special members of the community in charge of validating trades)
- Second: Witness (present at the validation process and communicates decisions to other nodes)
- Third: Accelerator (owned by various organizations and helps quicken the trade validation procedure)
This system accords collated tokens among validator nodes when blocks are produced.
The supply of BNB is capped at 200 million tokens, 50% of which were made available to the public during launching, 40% to the founders, and 10% to angel investors. Binance has put in a mechanism known as The Burn with the objective of phasing out 100 million BNB tokens over time to curb value depreciation.
Where to Buy BNB Coins
Godex is one of the fastest exchanges in the industry with an order execution time of five to 30 minutes. The service has over 200 currency pairs to select from, e.g., BNB to BTC at Godex.io.
Binance is the largest crypto exchange in the world and owns Binance Coin. It’s a reliable place to buy your BNB.
Crypto conversions and transactions are completed at Paybis using a credit or debit card within minutes. The platform has been around since 2014.
This platform is among the top 15 crypto exchanges judging by dollar amount volume. Its services are, however, unavailable to US customers.
BNB is owned by Binance, the leader among exchanges worldwide. The coin is listed across other trusted exchanges, such as Godex and Paybis. Depending on your decision to hold the coin or not, you may exchange it for other digital assets using the platforms above.